New tax bill may affect athletic departments

LOUISVILLE, KY (WAVE) - Starting next year, every American will be impacted by the biggest overhaul of the nation's tax code in over three decades.

President Trump signed the Republican tax bill into law on Friday.

Among those paying particularly close attention - athletics departments.

Those good seats at the KFC Yum Center for a UofL basketball game require a $2,500 donation. Under the current law, the alumni donor can deduct 80% of that cost.

But with the new law, that's over. Any contributions linked to the right to purchase season tickets will no longer be considered charitable donations.

The bill means a big change for donors, and likely for their revenue. Alumni donations cover a large chunk of most college athletic budgets, especially the expenses for sports other than football and men's basketball.

In the 2015-16 fiscal year, more than $30 million in contributions were made to UofL athletics.